Siasun Robotics: Plans to acquire 60% equity of subsidiary Siasun Investment for RMB 236 million

On October 10, Shenyang Siasun Robot Automation Co., Ltd. (hereinafter referred to as Robot) issued an announcement that it plans to use its own or self-raised funds to acquire 60% of the equity of its subsidiary Shenyang Siasun Investment Management Co., Ltd. (hereinafter referred to as Siasun Investment), with the target equity valued at RMB 236 million.

Prior to this acquisition, Robot held a 40% stake in Siasun Investment and Darui Investment held a 60% stake in Siasun Investment. After the completion of this acquisition, Darui Investment will no longer hold shares in Siasun Investment, and Robot will wholly own Siasun Investment and consolidate its financial statements.

According to the information, Siasun Investment was established in January 2017. It is a robot industry investment company under Robotics and is committed to promoting the industrialization of robots. Siasun Investment mainly assumes the responsibilities of the investment headquarters, responsible for the implementation of mergers and acquisitions and the investment and construction of regional headquarters, industrial centers and intelligent industry innovation service platforms.

According to reports, Xinsong Investment is focusing on building a "3+6+M+N" strategic development model, with the domestic headquarters (Shenyang), international headquarters (Shanghai) and investment headquarters (Beijing) as the core. Through cooperation with relevant local governments in China, it will develop six regional headquarters, M industrial centers and N smart industry innovation service platforms in China.

At the same time, based on the implementation of robot industry projects, we will fully develop the robot environmental protection industry and the robot health industry, forming a situation in which the three major industries are led by the robot industry and 4.0 industry and are supported by the robot environmental protection industry and the robot health industry.

In 2021, Xinsong Investment's operating income was 1.447 billion yuan and its net profit was 73.8757 million yuan; from January to April 2022, its operating income was 647 million yuan, its operating profit was 59.6813 million yuan, its net profit was 42.9013 million yuan, and its net cash flow from operating activities was -222 million yuan.

As of April 30, 2022, Xinsong Investment’s total assets were 1.936 billion yuan, total liabilities were 1.285 billion yuan, and owners’ equity was 651 million yuan.

It is worth noting that Robotics emphasized in the announcement that after the completion of this transaction, the company will indirectly hold 80% of the shares of SYNUS Tech Co., Ltd. (formerly known as Shinsung FA CO., Ltd.) through Siasun Investment. This move is in line with the company's overall strategic layout in the panel and semiconductor equipment business fields.

In January 2018, Robotics disclosed an announcement that its shareholding company Shinsung Investment, as the buyer, signed a "Share Transfer Agreement" with the seller, South Korean listed company SHINSUNG (Xinsheng). Shinsung Investment acquired 80% of the shares of Shinsung FA CO., Ltd., a company established by SHINSUNG to engage in factory automation business (FA business), for 104 billion won (approximately 640 million yuan at the time).

Among them, SHINSUNG is well-known in the field of semiconductors and panels, ranking among the top five in the world. SHINSUNG ranks among the top three in South Korea, where semiconductor and panel automation are well developed, and is a representative enterprise with high influence in the industry. Regarding this transaction, the announcement released by Robot at that time showed that this transaction would help the company extend its industrial chain in the semiconductor and panel fields and help the company become a mainstream supplier in the semiconductor and panel fields.